Kross Limited IPO Listing today investors disappointed after flat listing of shares

Shares of Cross Limited, a company that makes vehicle parts, were listed on the market on Monday after its IPO last week. The company's shares started flat. That means the IPO investors could not earn anything on the listing of the shares and were disappointed.

IPO investors did not earn any money

Cross Limited's share was listed on BSE and NSE this morning at a price of Rs 240. In the IPO, the company had fixed a price band of Rs 228 to Rs 240 and one lot of it included 62 shares. Accordingly, one had to spend Rs 14,880 to buy one lot of Cross Limited's IPO. Since the listing has been done at a price equal to the upper price band, investors have not been able to earn any profit. On the other hand, Bajaj Housing's shares have been listed at a premium of 114 percent.

Cross Limited manufactures such parts

Cross Limited's business is primarily focused on the manufacturing and supply of trailer axles and suspension assemblies. The company manufactures a wide range of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles. Apart from that, the company also manufactures parts for agricultural equipment.

500 crore IPO got such response

The IPO of Cross Limited opened on 9 September and remained open for subscription till 11 September. The company had come up with an IPO of Rs 500 crore, which included a fresh issue of shares worth Rs 250 crore and an offer for sale of Rs 250 crore. The IPO was subscribed 24.55 times by QIBs, 23.40 times by NIIs and 11.26 times by retail investors. Thus, the IPO was subscribed overall 17.66 times in 3 days.

IPO money will be used here

The company had stated in its IPO draft that it will use the money raised from the first public sale of shares to purchase machinery and equipment. Apart from these capital expenditure needs, the company will also use a part to pay off old loans taken from banks and other financial institutions. Some part will be used for general corporate purposes.

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